And then we saw another one, to the Automobile Industry this time. The funny part of this bailout is, the money was given to these companies for resurrecting their tumbling down empires (to an extent that is). Instead, GM decided that it will bail out its financial arm GMAC out of the turmoil that its going through, rather than spending most of the chunk to benefit the Automotive sector of the company. So, how did this bailout help to bailout Automotive side of GM?...hush...we don't know how. We at least know that GMAC got a good portion of it.
Well, no matter what, these new ideas will soon need to be mastered, and pretty soon there need to be coursework in B-Schools, Executive education programs, where tomorrow's business leaders and corporate inventors/investors need to taught - The concept of how to build an empire, and 'ensure' that it gets enough public attention and dependency, and finally get it massacred, so that the Govt can bail it out, due to public interest.
One should notice that the Indian Govt is quick to learn and implement, and this situation is no exception. Most of us know about the recent debacle with Satyam Computers Ltd. A service provider company from India, that pioneered and steered the outsourcing Industry for 2 decades now.
What happened: They screwed up, made tons of money, projected fictitious numbers and now confessed to people. (Look at the number of shares of the company that they have traded off every quarter for 22 times since 2001...amazing!)
Full News Snippet: here
